TAN CHONG MOTOR HOLDINGS BERHAD
Annual Report 2014
66
NOTES TO THE FINANCIAL STATEMENTS
2.
Significant accounting policies (continued)
(k) Equity instrument (continued)
(iii) Repurchase, disposal and reissue of share capital (treasury shares) (continued)
Where treasury shares are distributed as share dividends, the costs of the treasury shares is applied in the
reduction of the share premium account or distributable reserves, or both.
Where treasury shares are sold or reissued subsequently, the difference between the sales consideration net
of directly attributable costs and the carrying amount of the treasury shares is recognised in equity.
(l)
Employee benefits
(i)
Short-term employee benefits
Short-term employee benefit obligations in respect of salaries, annual bonuses, paid annual leave and sick
leave are measured on an undiscounted basis and are expensed as the related service is provided.
A liability is recognised for the amount expected to be paid under short term cash bonus or profit-sharing
plans if the Group or the Company has a present legal or constructive obligation to pay this amount as a
result of past service provided by the employee and the obligation can be estimated reliably.
(ii) Defined contribution plans
The Group’s and the Company’s contributions to the statutory pension funds are charged to profit or loss in
the financial year to which they relate. Once the contributions have been paid, the Group and the Company
have no further payment obligations.
(iii) Defined benefit plans
The Group’s and the Company’s net obligation in respect of defined benefit plans is calculated separately
for each plan by estimating the amount of future benefit that employees have earned in the current and prior
periods, discounting that amount.
The calculation of defined benefit obligations is performed annually by a qualified actuary using the projected
unit credit method.
Remeasurements of the defined benefit liability, which comprises actuarial gains and losses are recognised
immediately in other comprehensive income. The Group determines the interest expense on the defined
liability for the period by applying the discount rate used to measure the defined benefit obligation at the
beginning of the annual period to the then defined benefit liability, taking into account any changes in the
defined benefit liability during the period as a result of contribution and benefit payments.
Net interest expense and other expenses relating to defined benefit plans are recognised in profit or loss.
When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that
relates to past service or the gain or loss on curtailment is recognised immediately in profit or loss. The
Group and the Company recognise gains or losses on the settlement of a defined benefit plan when the
settlement occurs.
